It’s official, EA has given up their talks with Take-Two and, as a result, the stock of both companies is falling like a stone. While gamers may cheer knowing the Grand Theft Auto and 2K Sports product lines will continue to compete with EA products, share holders are doing a WTF?
Take-Two has had its share of financial difficulties, but nothing shakes up a stock more than a break in discussions when the words acquisition have been spoken. It causes uncertainty and lack of understanding on the part of the game industry and share holders. EA’s stock dropped 2.7% upon opening this morning but has begun to stablize as it’s clear EA isn’t in any financial peril from this breakup in discussion.
Take-Two’s stock, however, is in epic free fall with a 25% decline since the discussions ended. One theory is that, “is taking a huge beating as everyone and their mother tries desperately to sell the shares the figured EA was going to to buy.” (kotaku)
As the game industry gets more competitive, builds bigger bank-roll and becomes a staple entertainment icon there is always more business savvy people getting into the game trying to make a fast buck. In this case, the shareholders obviously aren’t pushing for Take-Two’s future decisions or product launches — this is the reaction of business folks trying to make money.
There is huge risk with block buster 100-million dollar titles and all the crazy hype involved with some of the biggest games in history. They break sales records, smoke box-office numbers and bring new gamers into the industry but it’s all at risk when money gets involved. One bad move and a company making a title like GTA can find themselves in financial peril.
With risk comes reward, but failure is always sneaking up around the corner so watch out!
@Duke Nukem Forever review fiasco:
This one is almost ‘no comment’. The nasty side is what Jordan said (except foe Jonah I can’t yet distinguish your voices, sorry if I mix you up): they don’t mind blacklisting, they just don’t want it to be public.
@ Apple will be the games industry in 10 years:
You can even devise a control scheme for touch based interfaces, but!
Just like console controllers, a mouse and keyboard using player will best one using a console controller, in competitive gaming.
Jonah, I’m with you on the real books vs. kindle. Don’t get me wrong guys, that’s a device that I like, but it doesn’t hold a kandle 😛 to a real book.
@ No need for PS4, PS3 now hitting its stride:
Erm, hello, PS3 is hacked? Piracy will be as rampant on PS3 as is on PC? PS3 might become a very unattractive platform to develop for? (hard to code for it and with it’s DRM system exposed for all to pirate your product).
😀 Jonah, thanks for pointing out misspellings, it’s useful to me.
@Question of the Week:
I do care what it says in the review. I do want to read if a certain aspect is flawed: perhaps it is a feature that interests me, and in that case I’ll skip the game.
As for the score versus the entire contents, well, it actually depends on the value of the score.
If it’s below 5, then I don’t even bother to read the review. The score weights 100%.
If it’s up until 7, the score weights 50%. Above 7, it’s really up to the contents of the review, not the score: weight drops to almost 0%.
Just to let you know that things in Australia aren’t that bad. If one looks around abit you can get a good deal on games even if they are brand new. Granted prices have been $110 for some games but with some skill you can get it imported from the UK with shipping for nearly half the price. I havn’t brought a game from a major Australian retailer for some time now. Feel sorry for those who do ouch.